Daily Briefing: Singapore stocks set to dominate Asean equities; AI healthcare startup scores series A funding

And here's how to know which REITs provide the best returns.

From Bloomberg:

As investors in Southeast Asian equities deal with an onslaught of news including monetary policy decisions, the outlook for the U.S. dollar and geopolitical tensions, Morgan Stanley strategist Sean Gardiner has picked his favorite -- Singapore.

And the reason behind that? Earnings growth. Companies in the city-state could see earnings per share rise by 14 percent this year, and another 10 percent in 2019, he wrote in a report dated May 14.

He expects Singapore stocks to remain ahead of Asia ex-Japan peers at least until the end of 2018 as corporations continue to report “solid” results. The nation is a beneficiary of improving global economic growth and that should drive its banks -- comprising 43.4 percent of the benchmark Straits Times Index -- to profit from better loan growth.

Read more here. 

From DealStreet Asia: 

Singapore-based artificial intelligence (AI) healthcare startup UCARE.AI has raised an undisclosed amount in a Series A round backed by Southeast Asia’s oldest insurance group Great Eastern, venture capital firm Walden International, investor Peter Lim, and WPGrowth Ventures.

The latest funding round brings UCARE.AI’s total funding to date to $8.2 million, inclusive of seed and Series A rounds, founder and CTO Neal Liu told DEALSTREETASIA in an interaction.

The startup said it uses its predictive engine, using proprietary deep learning and neural network algorithms, to help prioritise healthcare resources to reduce preventable hospitalisation, potentially resulting in “significant annual savings in the industry”.

Read more here. 

From The Motley Fool: 

Real estate investment trusts, or REITs, with its exposure to real estate and its relatively high and sustainable distribution yield, have certainly been a popular investment choice of late. But with so many REITs in the market, choosing the one that can provide market-beating returns can be a tough ask.

Source of borrowings
REITs use a variety of sources of borrowings. These include bank loans, bonds, revolving credit facilities, and equity fundraising. They can also either borrow money onshore or from offshore sources.

Debt maturity profile
The debt maturity profile refers to the date when borrowings are due. Investors can find the debt maturity profile in a REIT’s annual report or quarterly presentations.

There are two things that investors need to assess here. One, the longer the debt maturity profile, the better as the REIT does not have to worry about rising interest rates until the debt matures. Two, the REIT’s debt should mature over a staggered period. This reduces the risk that the REIT needs to refinance all of its debt in a period of high-interest rate environment.

Read more here.